MrFedEx
Engorged Member
Perhaps. My point is that FedEx is steering the ship. You get to be the "captain" and turn the wheel, but it isn't connected to the rudder. Captain Smith is navigating the Green Titanic from Memphis, or is it DC?
The FedEx Business Model
- Thread starter MrFedEx
- Start date
Perhaps. My point is that FedEx is steering the ship. You get to be the "captain" and turn the wheel, but it isn't connected to the rudder. Captain Smith is navigating the Green Titanic from Memphis, or is it DC?
dvalleyjim
Well-Known Member
yeah i get your point about doing it right but I started with Roadway Package system and that is what everyone at our terminal did, 1099. Sure I had restless nights of audits and penalties going back years. I know you think I don't know how to run a business, I guess you maybe right, but I've done it for 18 yrs. now. All i can say that the profit is now gone and I have more people after me for taxes than I ever have before. And it was fedex's insistance on micro managing our businesses that got them in trouble, not people like me. Look the point was if they had so much control over our methods down to what finger you should have your truck keys on then people were saying I should be any employee and not carry so much liability and expense.
What happened was Fedex made the contractor "do it right" and was able to continue to do business as usual. Thus being said I think they have now satisfied all the labor laws they were accused of breaking and now have excellent union protection with the new ISP model. I was never one to say that I can't work within there rules. I just need to make money or I'm not in business. I also have liked being a Fedex contractor. I just ain't stupid. Don't tell me it's this when I know what it really that.
dvalleyjim
Well-Known Member
It's really not, I saw what they did to single van contractors. They could do it do us tommorrow. If it was your dinghy you could take it to another waterway.
Dvalley
Don't give up. I started with RPS 18 years ago in July so I know exactly what you are talking about. If you want to stick it out, i would suggest that you contact a company in Des Moines Iowa called Accounting Associates. I recommend them because they know the business model inside out and backward and have tailored part of their business to serve fedex contractors. They have fedex clients all over the country and I am sure they could help you right the ship. They did with me and i now have them handle my payroll every week.
Don't give up. I started with RPS 18 years ago in July so I know exactly what you are talking about. If you want to stick it out, i would suggest that you contact a company in Des Moines Iowa called Accounting Associates. I recommend them because they know the business model inside out and backward and have tailored part of their business to serve fedex contractors. They have fedex clients all over the country and I am sure they could help you right the ship. They did with me and i now have them handle my payroll every week.
Who says I couldn't? Might not be in package delivery, but hey, I'm a talented guy.
MrFedEx
Engorged Member
The dinghy floats in the Uncle Fred's pond. He can tell you what color to paint it, how long it can be, and that you need to put his logo on it. He also tells the captain and the designated dinghy operators (DDO) exactly how to do their job. In other words, he has nearly absolute control over the SS Ground. You dock it at his dock, and the dock is managed by Fred's managers. The boat is loaded by Fred's employees, but the DDO aren't employees. He commands you to buy additional boats when needed and then micro-manages "your" boats as if they are his.
Sounds like you command "The Axiom", and B&L really runs the operation. Do you have any non-employees named Wall-E?
MFE
You once advised me to leave Express discussions to those who knew what they were talking about. I invite you to do the same with respect to Ground. You are defending the exact same bad business practices that you once derided Fedex for exploiting. As for what the ISP agreement allows, I suggest you get a copy of one and read it before you latch on to dvalley's complaints. There is still good profit to be made, even when obeying the law.
You once advised me to leave Express discussions to those who knew what they were talking about. I invite you to do the same with respect to Ground. You are defending the exact same bad business practices that you once derided Fedex for exploiting. As for what the ISP agreement allows, I suggest you get a copy of one and read it before you latch on to dvalley's complaints. There is still good profit to be made, even when obeying the law.
MrFedEx
Engorged Member
I didn't say it wasn't profitable. I said it's Fred's show.
dvalleyjim
Well-Known Member
I'm sure you can, and you have experience running a business. I'm just saying that it's their river and you will be taking your dinghy without their packages.
dvalleyjim
Well-Known Member
I'm too heavily invested to give up. Besides I don't hate Fedex, they've been very good to me and I have supported my family with this business. I just don't play the game of your independent, then call a meeting over the loud speaker to yell at everyone. I service their business, keep my nose clean, fly under the radar and don't go to any meetings. I am a small business man, entrepreneur, like they say. So let me mind my own business.
I don't let them yell at me. Know the agreement and push back when they overstep their bounds. As far as paying on a 1099, that's just illegal unless your drivers are providing the vehicle, fuel repairs, etc. Can't be mad at Fedex because they are careful that their business partners are obeying the law.
dvalleyjim
Well-Known Member
"as far as paying on a 1099, that's just illegal unless your drivers are providing the vehicle, fuel repairs, etc. Can't be mad at Fedex because they are careful that their business partners are obeying the law. "
I always figured I tell them that my drivers are employees of Fedex Ground and there misclassifed. Look I get away with a lot at my terminal because me and my drivers are 100% 'ers. And I get along with all the managers. Over the years they learned to let me do my thing. If I have problems I take care of it. They like that they never hear a peep form us and we do a good job. They also dread ever having to talk to me about stupid things they sweat other contractors out about because they know I will stick up for myself and always remind them that I am a small business man, an entrepeneur, an independent enitity etc. I only had problems with one Terminal manager in my 18 yrs of service. He was there for 2 yrs. 1st year he wanted to terminate my contract. Guess he couldn't find a reason. They loaded a supplement van everyday and I drove it for one year with no insurance because he wouldn't approve it. I figured it they continued to load it and let me go out that's on them.
After the first peak he decided he liked me, we got along (he changed not me) when he left he approved my supp for a route. Go figure.
I always figured I tell them that my drivers are employees of Fedex Ground and there misclassifed. Look I get away with a lot at my terminal because me and my drivers are 100% 'ers. And I get along with all the managers. Over the years they learned to let me do my thing. If I have problems I take care of it. They like that they never hear a peep form us and we do a good job. They also dread ever having to talk to me about stupid things they sweat other contractors out about because they know I will stick up for myself and always remind them that I am a small business man, an entrepeneur, an independent enitity etc. I only had problems with one Terminal manager in my 18 yrs of service. He was there for 2 yrs. 1st year he wanted to terminate my contract. Guess he couldn't find a reason. They loaded a supplement van everyday and I drove it for one year with no insurance because he wouldn't approve it. I figured it they continued to load it and let me go out that's on them.
After the first peak he decided he liked me, we got along (he changed not me) when he left he approved my supp for a route. Go figure.
How can you read your own post and think that Fedex or the IRS should be "Ok" with how you were doing business? I understand that you got away with alot and you liked it that way, but do you realize how many people were at risk with that unapproved (and thus uninsured by indemnity insuance) on the road every day? Not to be an ass, but Fedex is a better company for putting an end to it. I hope you stay with the company because you sound like a decent manager of drivers, but the ISP position requires much more than that. The company is better off keeping you as long as you begin to work within the law. Otherwise, they can't afford to do business with people who make it normal business practice to disregard the law.
dvalleyjim
Well-Known Member
uhhh, we all have to follow "the law" to contract with fedex now. So don't blow your top. I have been complient for the past 4 yrs. Although contractors still due whatever they can to get around payroll laws. A lot of this involves payments under the table. I don't but many do.
You drove an uninsured vehicle? For a year? You are incorrect...that would have been 100% on you, dude. Way not cool. The more I read about other contractors, the more I 'get' where the image of the Ground side that used to confuse me so much comes from.
As an aside, there is an ISP entity in my terminal made up exclusively of former single route guys. They all take a 1099 from the corp as pay. They pay cash to their fill in people. Annual compliance is due next month....I'm interested how that will play out.
As an aside, there is an ISP entity in my terminal made up exclusively of former single route guys. They all take a 1099 from the corp as pay. They pay cash to their fill in people. Annual compliance is due next month....I'm interested how that will play out.
Thank you Mom. I agree other contractors do some very questionable things. As far as the annual compliance goes, seems like a straight forward form that they will easily lie on and soon get caught as soon as the company wants to do so. Are you interested in growing your business quickly and without much in the way of investment? You could probably easily pick up some of that volume I would think.
NO way. Two rural Ground routes that don't border...one out of a p1000 and other out of a Sprinter cube and a rural HD route out of a Sprinter? I'd rather inject arsenic into my eyeballs. This same group had a driver take the mirror off a customers car with a Penske. Our SM's exact words, within my earshot? "There is no proof you did it, you say you didn't do it, then screw 'em." Regarding the customer's report of the damage. The SM is also fully aware they 07 everything they should be 04ing, but lets it go because they gladly let him bend them over on a regular basis.
Whatever. I don't have to falsify to make perfect service.
Whatever. I don't have to falsify to make perfect service.
CJinx
Well-Known Member
I kind of have to side with the driver on that one. Without any evidence, it's hard to claim that a specific person caused specific damage. Unless there is paint transfer or damage to the contractor vehicle, eyewitnesses or recordings, that kind of stuff. I have a least 1 customer a day calling in and claiming that they didn't receive a door tag for their signature required packages and they're usually full of BS.
As for the 07/04 thing.. I hate seeing this. They really should change it so 04 does not count against service for CSI. I see the same thing happen except they use code 34. You can't link a door tag with that code so the recipient might not even know you were there and that they need to sign for something. As far as I'm concerned, any bring back with a service cross that doesn't have a door tag scanned is not a real attempt. It's almost April and I still see code 82, that is ridiculous.
As for the 07/04 thing.. I hate seeing this. They really should change it so 04 does not count against service for CSI. I see the same thing happen except they use code 34. You can't link a door tag with that code so the recipient might not even know you were there and that they need to sign for something. As far as I'm concerned, any bring back with a service cross that doesn't have a door tag scanned is not a real attempt. It's almost April and I still see code 82, that is ridiculous.
